All about Life & Real Estate in Silicon Valley – Broker Michael Koo's Blog.

Timing the housing market is extremely difficult, so waiting may not improve buying conditions.
Buyers should focus on homes that meet their needs and budget rather than market predictions.
Home prices generally trend upward, making it harder to save for a down payment over time.
Entering the market allows buyers to start building equity and long-term net worth.
Experts emphasize personal readiness over trying to time the market for optimal conditions.

The old 620 FICO minimum for conventional loans is basically gone.

Fannie Mae removed its minimum credit score requirement in November 2025.

Loans under $832,750 in 2026 typically qualify as conforming mortgages.

New models like FICO 10T boost approvals up to 5%.

Roughly 5 million potential buyers could benefit from expanded credit rules.

US housing affordability shows early improvement as mortgage costs ease and incomes rise modestly.
As of early 2026, 20 of 50 largest metros may reach affordability thresholds, the most since 2022.
Mortgage payments now consume a smaller share of household income, boosting buyer negotiation power.
High-cost coastal cities remain above affordability; prices still outpace wage growth for many buyers.
Sellers face more payment-sensitive buyers, with cash sales and flexible options improving market transitions.

Winter 2025 survey: 34% plan no 2026 purchases, up from 32%; 12% plan to buy more, up from 8%
Fix-and-flip investors more optimistic: 52% expect improvement vs. 26% of rental investors
45% of rental investors, 26% of flippers plan no purchases in next 12 months
Top 2026 challenges: 58% cite financing costs, 37% rising prices, 29% competition, 29% low inventory
Most expect 2026 purchase volumes to match 2025; some see early signs of market recovery

Housing demand remains strong due to universities and non-tech industries.
Regulatory constraints sustain high baseline demand, keeping prices stable.
Market competition continues, encouraging quality housing development.
Potential revenue could fund community and infrastructure improvements locally.
Luxury departures minimally impact overall Bay Area home market.

Capital gains exclusion requires 2 years ownership and use; gains over $250K/$500K taxed at 15%-20% plus 3.8%.
Profit from sale adds to yearly income, possibly pushing you into a higher tax bracket and triggering extra 3.8% tax.
Depreciation recapture can cost landlords up to 25% of all depreciation taken, even if not claimed.
Strict 1031 exchange deadlines: 45-day identification, 180-day closing; missing them means losing tax deferral.
IRS rule changes in 2025-26: fewer rental-loss deductions for >$100K income, stricter 1031 reporting.

Well-prepared homes sell up to 73% faster, increasing buyer interest and overall sale success.
Strong curb appeal can boost home value by up to 7%, driving more showings.
Minor repairs and simple upgrades typically raise home value by 1–3%.
Decluttering can increase sale prices by $2,584 on average, while making spaces feel larger.
Staging reduces market time by 33–50% and can raise offers 6–20%.

Early 2026 refinance applications jumped as rates fell near 3-year lows.

Evaluate refi savings vs closing costs before committing to a new loan.

Refinancing may pay off if you plan to stay long in your home.

Shop multiple lenders and calculate break-even time for smart decisions.

Experts emphasize math over timing when considering a 2026 refinance.

Prices aren’t crashing; growth slowed to ~1–2%, which is actually buyer leverage.
Mortgage rates stabilized after Fed held 3.5–3.75%, killing panic, not costs.
Hidden win: inventory is rising, but still scarce enough to block a true crash.
Experts’ secret: small rate drops can flood demand fast and erase buyer power.
Real flex is entry timing: buy livable, refinance later, build equity quietly.

A 6.15% mortgage rate presents affordability challenges, especially for buyers with high-priced homes, raising monthly payments significantly.
Prospective buyers should lock in rates within the 6.0%–6.4% range rather than waiting for unpredictable drops below 6.0%.
Options such as FHA or VA loans, or an Adjustable-Rate Mortgage (ARM), can offer slightly lower initial rates for qualified buyers.
Refinancing activity is likely to remain limited unless rates dip below 5.9%, benefiting only recent buyers with high-rate loans.
Buyers should prioritize finding the right home at an affordable price over timing minor fluctuations in mortgage rates.